Question

1. Kevin wants to know how much money he will have in his account if he earns 5% interest compounded yearly for four years on a deposit of $2000.00.
A. $ 2205.00
B. $ 2315.25
C. $ 2100.00
D. $ 2431.01

Answer 1

multiply 2000 by 0.05
then add that to 2000
and then multiply what you get by 0.05 and so on

Answer 2

I got 105, and that is not an answer choice :( @carolina4567 what do you think?

Answer 3

@carolina4567 @phi @wcrmelissa2001

Answer 4

like well 2000* 0.05 = 100

Answer 5

for year 2 2100*0.05

Answer 6

=105

Answer 7

year 3 2205*0.05

Answer 8

=110.25

Answer 9

2315.25

Answer 10

@WhyStudyAlone3

Answer 11

Thank you! :)

Answer 12

5% interest compounded yearly for four years

change 5% to 0.05
the formula is

\[ P= P_0 (1+ rate)^{years}\]
rate is 0.05, and P0 is 2000 (start amount)
so your equation is
\[ P = 2000 \cdot 1.05^4 \]
you will need a calculator to find the number.